GRAINS-Soybeans firms for 9th session, longest unbroken rally in over 3 years

Published 9:42 PM ET Wed, 24 Jan 2018
Reuters

SYDNEY, Jan 25 (Reuters) - U.S. soybeans rose for a ninth straight session, the longest unbroken rally in more than three years, as dry weather in South America and a weaker U.S. dollar stoked expectations of strong demand for North American supplies.

FUNDAMENTALS

* The most active soybean futures on the Chicago Board Of Trade were up 0.2 percent to $9.94-1/2 a bushel by 0214 GMT, having firmed 0.6 percent on Wednesday when prices hit a high of $9.94-3/4 a bushel - the highest since Dec. 8.

* Soybeans last rose for at lease nine straight sessions in July 2014.

* The most active corn futures unchanged at $3.56-1/2 a bushel, having gained 1.5 percent in the previous session.

* The most active wheat futures were up 0.3 percent to $4.34-1/4 a bushel, having closed up 2.7 percent on Wednesday.

* Soybeans supported by concerns about drought in parts of Argentina, the world's third-largest soybean producer and largest exporter of soymeal and soyoil.

* Dryness there has fueled forecasts for lost plantings and yield damage that could potentially tighten global supplies and make U.S. exports look more attractive.

* Grain complex had been underpinned by a weaker U.S dollar, increasing the competitiveness of U.S. supplies.

MARKET NEWS

* The dollar wallowed near three-year lows against its peers on Thursday after caving on comments by U.S. Treasury secretary Steven Mnuchin that he welcomed a weaker currency, while the euro steadied ahead of the European Central Bank's policy decision.

* Oil prices on Thursday hit their highest since December, 2014, pushed up after U.S. crude inventories posted a tenth straight week of declines and as the dollar continued to weaken.

* The S&P 500 was little changed on Wednesday while the Nasdaq lagged in choppy trading in the wake of comments by U.S. Commerce Secretary Wilbur Ross which hinted at action against China in a trade war.